WI Dept. of Revenue releases Fall 2014 economic outlook

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Wisconsin personal income grew 2.7% in 2013, just above growth of 2.6% nationwide. Personal income growth was mainly driven by strong growth in proprietors’ income, particularly farm income, up 41.7%. Wisconsin wages and salaries income grew 3.2% in 2013, above the U.S. growth of 3.0%. After adjusting for inflation, real wages grew 1.7%.

Wisconsin employment grew 1.2% in 2013, while private employment grew faster at 1.4%. Wisconsin employment will grow 1.4% in 2014 and 1.2% in 2015. Income will grow 3.1% in 2014 and will gain momentum in 2015, growing 4.3% in 2015 and 4.7% in 2016. Wages will advance at 3.5% in 2014 and should grow an average of 4.3% between 2015 and 2017.

In June, the Bureau of Economic Analysis released the preliminary 2013 estimate of gross domestic product (GDP) by state and revisions to previous years. Preliminary GDP data shows that Wisconsin real GDP grew 1.7% in 2013, just above the 1.6% growth of the Great Lakes region and slightly below the comparable nationwide growth of 1.8%. Revisions to Wisconsin real GDP show that the state economy grew more strongly in 2011 than previously thought, but slower in 2012 compared to the previous estimate. Wisconsin real GDP grew 1.7% in 2011 and 1.0% in 2012.

Agriculture was a major contributor to 2013 real GDP growth in Wisconsin (0.4 percentage point), twice its contribution nationwide. The second largest contributor was the health care and social assistance sector, adding 0.3 percentage point. On the other side, the manufacturing sector was a drag for Wisconsin real GDP in 2013 while showing a positive contribution to U.S. real GDP (0.4 percentage point).

Click here to view the full report.